Sunday, August 24, 2008

3 Tips to choosing a profitable Network Marketing Opportunity

By Luke Liste


A lot of people don't fully understand the full potential of Network Marketing. This is because there are so many un-reliable companies starting out. Therefore you should never just jump right into any venture, without first comprehending MLM and the steps involved in choosing the right system.

But if you are good with people, and have a drive to own your own home business, then this business model could be what your looking for. You don't need to be a business expert, or know any secrets, some of the most successful people are those with no business experience at all.

The first thing you should understand is the difference between Multi Level Marketing, and Pyramid selling.

You really need to read through the next couple of paragraphs very carefully, so you fully understand the difference.

How a Multi Level Marketing company works, is by suppling their product or service to consumers through a network of distributors instead of through wholesalers and retail stores, like most companies. The distributors then make a percentage from the sales they make as well as the sales people they sign up make.

Now Pyramiding, instead of providing commisions on products they sell, pays distributors on each new person they sign up. You have to comprehend this, for the sole reason, that this process is actually illegal in a lot of countries.

The second thing you must consider is how old the company is.

With the average life span of any new Multi Level Marketing company only about 7 months, you should look for a well established company. A new MLM company might try to suggest that the earlier you get in the better the opportunity but this isn't so.

You want a well established company, with a trusted product. If the product is good, you don't have to worry about getting in to late, because there will always be an expanding market. You don't want to put your time and money into a short lived venture, the older the company the more successful it must be.

The 3rd thing you should observe when choosing an MLM opportunity, is if they provide you with all the training and resources to help you move the product, after all that is how the company will survive, if its distributors are successful.

They should however never use pressure to make sales, a distributor should be able to expand their business at whatever speed they like, and not feel pressured by the company. Although being product driven, they must make sales, so any good company will provide higher commisions and rewards for distributors that make higher levels of sales.

I mean it makes sense for the company to reward those that increase the companies bottom line.

So there you have it, anyone can start a MLM business with no experience, but you should research the company, make sure there well established, provide full support and training and most importantly are a product driven company.

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